The Central Bank of Nigeria (CBN) has injected a total of US$122.67 million into the foreign exchange (FX) market to enhance liquidity and stabilize the exchange rate.
The intervention, conducted over two days, saw the apex bank sell the funds to 46 authorized dealers.
According to a statement released by Dr. Omolara Duke, director of financial markets at the CBN, the apex bank sold US$67.5 million to 27 authorized dealers on July 10, 2024, at an exchange rate ranging from N1,480.00 to N1,500.00 per dollar. Additionally, on July 11, 2024, the CBN sold US$55.17 million to 19 authorized dealers at a fixed rate of N1,540.00 per dollar.
The CBN noted that the funds injected into the market are expected to be utilized exclusively for trade-related transactions, with authorized dealers required to report such transactions within 72 hours.
The apex bank reiterated its commitment to maintaining stability in the foreign exchange market through continuous interventions and monitoring of market activities.
This latest intervention by the CBN is part of its ongoing efforts to manage the foreign exchange market and ensure adequate liquidity for importers and other authorized users. The bank has previously emphasized the importance of trade-based transactions in accessing foreign exchange and has taken steps to curb speculative activities in the market.
While the intervention is expected to relieve importers and other FX users, the long-term sustainability of the foreign exchange market will depend on factors such as government revenue, export earnings, and investor confidence.
The CBN’s move comes amid ongoing efforts to address the Nigerian economy’s challenges, including foreign exchange scarcity and inflationary pressures.